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Fertilizer Use in Smallholder Agriculture in Ethiopia

Abstract:

The paper explores the context and constraints to fertilizer and modern input use among smallholders in Ethiopia, one of the poorest countries in Africa with a very large agricultural population. The issues explored include the extent of fertilizer under current smallholder production conditions, the extent of finance and credit constraints, whether risk related factors affect fertilizer use, and what are the overall constraints to fertilizer use. The analysis makes use of a recent survey of rural smallholder households in the Amhara region of Ethiopia. The results suggest that farmers in parts of the region appear to be utilizing adequate amounts of fertilizer, and are not credit constrained as hypothesized, albeit they appear to be influenced by a variety of risks, and exhibit lower yields than the average for Ethiopia or the Amhara region. Risk appears considerable and influences both the use of modern inputs and fertilizer, as well as the amount used. Some counterintuitive results suggest that the current government controlled system of fertilizer distribution needs further study and review.